N-M #629 - Customs stamps and tax invoices
#629 - Customs stamps and tax invoices
Leaving aside the topics of Black Serpent Bay and Lightning Furnace, Horn quickly steered the conversation back on track.
Horn tapped the table and cleared his throat: "First of all, I'm creating a budget not because I personally like to plan everything, but to ensure that every penny is spent wisely.
Without a budget, we'll fall into disordered spending—local lords, religious orders, even ourselves, might waste funds on redundant, ineffective, and corrupt projects.
If this continues, no matter how much revenue we have, it will be eaten away."
He paused for a moment, glanced at Moliaty, and continued, "The core of the budget is to spend money where it really matters."
Horn picked up a draft budget priority list from the table: "I won't force a specific way to spend, but rather establish a priority, starting with the most important: military expenditure, government and administrative expenses, and infrastructure construction."
"Translate," Moliaty said, twirling a quill between her fingers.
"Military expenditure is the top priority," Horn's tone became serious, "At the latest in three years, the Kingdom of Laya will attack with an army of at least fifty thousand, possibly seventy thousand, while we have only twenty thousand soldiers at most.
We need to expand, train, equip, and even build border fortresses. All of this requires money, urgently needed funds, do you agree?"
"Agreed."
He paused and continued, "Second, establishing government and administrative expenses. You know how large our army is relative to the population within the Empire, and without an efficient government, these armies might even collapse from within."
"But their income shouldn't be too high, otherwise it will squeeze the army's benefits," Moliaty reminded.
"Don't worry, I know what I'm doing," Horn patted his chest, signaling Moliaty to rest assured, "Third, infrastructure, to facilitate the transmission of government orders and trade, and also to facilitate troop movements."
"Building roads and dams is expensive, are you sure these revenues are enough?" Moliaty stroked her chin.
Horn coughed lightly, his tone softening slightly, "But local taxes alone are not enough, we need a completely new form of taxation."
Moliaty raised an eyebrow: "What do you mean?"
"Tariffs. We need to collect tariffs uniformly, and no longer allow local lords to set up checkpoints and collect taxes along the way," Horn continued, "Every entrance to major roads and waterways must have checkpoints and border tax offices."
"Is there any difference between this and local lords setting up checkpoints to collect taxes?" Moliaty crossed her legs, "Anyway, the lords have to pay taxes to us."
"Do you remember when we attacked Summergreen City (Flying Falls Fortress) by water, it only took three days from Stillwater Dock to Summergreen City, but from Jeanneburg to Rapid Falls City, almost the same waterway, why did it take seven or eight days?"
Moliaty's youthful face wrinkled slightly, like a big tiger with a little cat's head thinking: "Because we have to transfer... ah, I understand."
It must be said that unlike when Horn had to explain everything in Prague, capable people understand things quickly.
The biggest problem with lords setting up checkpoints along the way is not repeated taxation, but hindering circulation!
Taking Sechinger selling pigs as an example, each checkpoint has to be inspected, and if there are many people, they may have to queue, or even stay overnight.
By the time it passes through the checkpoints to Jeanneburg, even the most authentic fat pig will have become thin from hunger.
Along the way from Jeanneburg to Rapid Falls City, a large number of low bridges have been built, preventing ships from passing, and merchants must disembark and transfer, and only after paying the crossing tax are they allowed to leave with their goods.
This is also the reason why Horn traveled to Rapid Falls City so slowly, but in the Hotam County area, the church's power is huge, able to suppress the nobles, allowing merchants to uniformly pay a bridge tax once in Flying Falls Fortress.
"Tariffs, my suggestion is to establish a dedicated independent department to manage them."
"A dedicated independent department? Is it necessary?"
"Tariffs are very important," Horn said seriously to Moliaty, "This is the cornerstone of a unified country."
"Why? Isn't this just ordinary tax revenue?" Moliaty leaned back in her chair and took a sip of black tea dismissively.
"Tariffs turn the local bridge and road taxes into a unified collection at the border, which involves a question: who will manage and distribute the tax revenue, which is public?"
Moliaty smelled the scent of power and immediately sat up straight: "I will."
"Can you do it?" Horn couldn't help but smile bitterly, "Do you have enough talent under your command? Are there so many tax officials and accountants?"
"Damn it, give me some," Moliaty supported herself on the table with one hand, flipped in front of Horn, and hugged his head, "You have so many people, can you give me some?"
"You have your pool of noble talents," Horn struggled, his head swelling from the pressure, "Those secularized noble younger sons, children from small noble families, are all your talent pool."
"They can fight bandits, repair roads, and manage agriculture, but if you really want them to preside over taxation..." Moliaty shook her head in disgust.
"That's why I suggested co-management," Horn stood up from under Moliaty's butt, "But I demand that the tariffs of Langsand County be completely under my jurisdiction, this is a political issue, you understand my meaning."
"I understand." After realizing the core of the customs union, Moliaty quickly reacted.
Horn is preparing to quietly make Black Serpent Bay a part of them.
"But the problem is, how should we supervise smuggling?" Moliaty became serious after realizing the importance of tariffs, "Could it be that we build a wall on the border?"
"No, no, no, building border tax offices on important roads is enough, my opinion is that the public spontaneously supervises, shifting the cost to the traders themselves."
Horn took out a document titled "Trial Act on Tax Stamps and Stamp Duty" and handed it to Moliaty.
This plan is very simple.
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Suppose a seller, Tom, brings 50 barrels of wine, worth 50 gold pounds, into the country. First, he registers the quantity, value, and ship at the border tax office, pays a 5 gold pound tariff, and obtains three tax stamps and certificates.
Whenever he docks, the tax officials on the dock will check his tax stamps and certificates, and if he doesn't have them, he will have to pay the tax.
When trading, the seller must staple one of the three original tax stamps and the premium tax stamp together and give it to the buyer, keep one for himself, and give one to the tax official.
Suppose Tom sells 50 barrels of wine to local seller Jerry for 60 gold pounds (a premium of 5 gold pounds), Jerry must ask the seller Tom to show the tax stamps and certificates.
If it is found that there are no tax stamps after the transaction is completed, the tax that needs to be paid is not 10% of the premium (i.e., 0.5 gold pounds), but 5.5 gold pounds.
If Jerry fails to fulfill his supervisory responsibility for the seller, he will have to pay the tax for the seller!
Similarly, Jerry's downstream will make similar demands, otherwise he will have to bear up to 6 gold pounds of supplementary tax.
At the retail level, suppose Jerry is a wine wholesaler in a city, then he has to take the tax stamps to exchange for stamps.
Only wine with stamps is legal wine. If a tavern buys wine from Jerry and finds that it does not have a stamp, it can report it.
The reporter will receive 20%-35% of the evaded tax, and at the same time, through the ledger, all taverns that have purchased unstamped wine must also pay the tax.
Of course, this is not a perfect process, but a dynamic game process.
If the amount is small, naturally no one will offend the distributor for this small amount of money; but if the amount is large, at most they will take the money and move to another city to live.
Inevitably, some people will bring in a small amount of smuggled goods, but compared to large amounts of tax, Horn will turn a blind eye to that part.
After all, the tax cost of this part is greater than the tax revenue, and he won't do a losing business.
"I generally agree with this budget," Moliaty unknowingly exchanged positions with Horn and sat on the reporting seat opposite Horn, "But many areas have not yet achieved a hundred-household district, what are you going to do?"
"Old methods for old areas, new methods for new areas," Horn spread his hands, "Anyway, by next summer, the entire Thousand River Valley should have passed the perpetual lease."
"What about tomorrow's financial meeting?"
"Still the old script, I'll lower the price first, you disagree, then we quarrel, you leave in anger, I also leave, Catherine comes to invite me, and Jeanne goes to invite you again, how about it?"
"It is estimated that those old men will be scared," Moliaty couldn't help but laugh, "The dwarf mine owners and workshop owners of the Steel Guild are counting on your agricultural tool orders."